Missouri Credit Union Association - Appraisals for Mortgage Loanshttps://www.mcua.org/taxonomy/term/1400
enMortgage Loan Proposals Pending at Two Agencieshttps://www.mcua.org/node/887
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>There are currently two pending proposals regarding appraisals for certain mortgage loans.&nbsp; First, a <a href="http://www.cuna.org/download/rcc_091412.pdf" target="_blank">Consumer Financial Protection Bureau (CFPB) proposal</a> would amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) and require creditors to provide free copies of all written appraisals and valuations developed in connection with an application for a loan secured by a first lien on a dwelling.&nbsp; Currently, federal credit unions are exempt from the appraisal delivery requirements of Regulation B.&nbsp;The proposal would remove this exemption and require credit unions to comply with the proposed requirements.&nbsp; While most creditors currently provide the borrower with a copy of the appraisal, there is concern with the potential scope of the requirement to include copies of all written valuations developed in connection with the application.</p>
<p>Additionally, the National Credit Union Administration (NCUA), in conjunction with the&nbsp;CFPB&nbsp;and the other federal financial regulators have jointly issued a <a href="http://www.cuna.org/download/rcc_091712.pdf" target="_blank">proposal on appraisals for “higher-risk mortgages</a>.”&nbsp; Specifically, the proposal would amend Regulation Z to implement the appraisal requirements for extensions of credit for “higher-risk mortgage loans” required by the Dodd-Frank Act.&nbsp; In general, loans are “higher-risk mortgage loans” under this proposed rule if the APR exceeds the average prime offer rate (APOR) by 1.5% for first-lien loans, 2.5% for first-lien jumbo loans, and 3.5% for subordinate-lien loans.&nbsp; The proposal contemplates using as a “Transaction Coverage Rate” (TCR) as an alternative to APR (as proposed in its <a href="http://www.cuna.org/download/rcc_072312.pdf" target="_blank">pending RESPA-TILA proposal</a>).&nbsp; The TCR alternative is intended as an option to circumvent negative consequences of the CFPB’s proposed amendment to the definition of “finance charge” under the RESPA-TILA proposal.&nbsp; In addition, the proposal would allow a creditor to make a higher-risk mortgage loan only if certain conditions such as the creditor has obtained a written appraisal by a certified or licensed appraiser, are met.&nbsp; Also, the proposal would require a higher-risk mortgage loan creditor to obtain an additional appraisal under certain circumstances.&nbsp; The proposal would not apply to reverse mortgage loans, loans secured solely by residential structures, and would exclude “qualified mortgages” from the definition of “higher-risk mortgage loan.”&nbsp; The CFPB has yet to finalize its ability-to-repay rule, which will define “qualified mortgage.”&nbsp;</p>
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</div></div></div><div class="field field-name-field-vocab-legislation field-type-taxonomy-term-reference field-label-above"><div class="field-label">Vocab Legislation:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/taxonomy/term/198" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">new</a></div><div class="field-item odd"><a href="/taxonomy/term/865" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">CUNA Advocacy report</a></div><div class="field-item even"><a href="/taxonomy/term/1400" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Appraisals for Mortgage Loans</a></div><div class="field-item odd"><a href="/taxonomy/term/128" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">CFPB</a></div><div class="field-item even"><a href="/taxonomy/term/185" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">NCUA</a></div><div class="field-item odd"><a href="/taxonomy/term/1217" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Regulation Z</a></div></div></div><span class="a2a_kit a2a_target addtoany_list" id="da2a_1">
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</script>Fri, 05 Oct 2012 14:45:31 +0000Sharon Bahr887 at https://www.mcua.orghttps://www.mcua.org/node/887#comments